Confidence in the Eurozone shaky at best
Dean Wright ,Senior Analyst ,Fxknight.com
The Euro continued to fall during the week amid fears that the Euro zone as the markets increasingly loose confidence in the member country’s ability to contain the Fiscal debt crises spreading to vulnerable economies such a Spain and Portugal.
The Spanish Prime minister has defiantly stated that there will be no bailout for Spain warning “those investors who are short selling Spain are going to be wrong” Meanwhile the cost of borrowing has risen for Spain showing just where the market’s confidence currently lies.
The bailout package for Ireland is expected to be released today which will outline how much and in what form the Irish government will pay back the loan in an effort to calm the markets. However the simple fact that Ireland needs this loan was enough to raise the worries of the stability of the economic community with Europe.
This will have a negative effect the on the price of Europe as investors fears that the debt crises in Greece throughout Europe is slowly being realised.
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